Sustainability Assessment of the Performance of Parmigiano Reggiano PDO Firms: A Comparative Analysis of Firms’ Legal Form and Altitude Range

Mattia Iotti (), Giovanni Ferri, Elisa Manghi, Alberto Calugi and Giuseppe Bonazzi
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Mattia Iotti: Department of Veterinary Science, University of Parma, 43126 Parma, Italy
Giovanni Ferri: Department of Veterinary Science, University of Parma, 43126 Parma, Italy
Elisa Manghi: Department of Veterinary Science, University of Parma, 43126 Parma, Italy
Alberto Calugi: Department of Engineering and Architecture, University of Parma, 43124 Parma, Italy
Giuseppe Bonazzi: Department of Engineering and Architecture, University of Parma, 43124 Parma, Italy

Sustainability, 2024, vol. 16, issue 20, 1-41

Abstract: Geographical indications (GIs), protected by the European Union with the collective marks of PDO (protected designation of origin), PGI (protected geographical indication), and TSG (traditional specialty guaranteed), play an important role in the social and economic system. They not only guarantee food needs, but promote correct consumer information, protect local food, and play a role in the environmental and social sustainability of rural areas. In Italy, Parmigiano Reggiano (PR-RE) PDO cheese is ranked second in foods with the GI protection mark by turnover. This research aims to assess the financial sustainability of the firms registered in the PR-RE PDO consortium using financial statement (FINSTAT) analysis. Financial ratios (FR) and the EM-Score were applied to assess firms’ performance, financial risk, and credit score. The analysis distinguished firms by legal form, cooperative and non-cooperative, and altitude range—plain hill and mountain. The main findings of the research were as follows: (1) a better performance of lowland non-cooperative firms and lower financial risk, (2) a longer duration of the inventory cycle of cooperative firms, and (3) a greater financial risk in mountain cooperatives. The results provide indications for improving firms’ performance and for designing financial instruments for the sector. To our knowledge, this is the first research to carry out an analysis of all the available FINSTATs of firms in the PR-RE PDO sector.

Keywords: Parmigiano Reggiano PDO; EM-Score; net working capital; DuPont chart; cooperative dairies; agricultural firm; financial sustainability; interest coverage ratios; free cash flow (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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